The US-EU divide on #esg policies for businesses stems from differing economic factors, notably the US stock market's influence on retirement funds and the #us's oil production dominance versus the #eu's oil imports. To address this, a "Net Zero Transformation rating" should separate #climate concerns from other ESG aspects. Shifting corporate activism towards heavy users like utilities and key producers like car manufacturers, rather than focusing solely on fossil fuel producers, could accelerate a #netzerotransition.
This study employs an agent-based #model to explore how #climate shocks spread within #supplychains, linking #climateimpacts to firms' #default #risks. Integrating supply chain and financial models, it outlines a framework to simulate physical risk transmission, downstream effects, and increased default risk. Findings underscore supply chains' role in #climaterisk propagation, advocate adaptation measures, and identify vulnerable sectors. The research underscores the necessity of climate #resilience in supply chains.
This study addresses #climate-induced decline in #honey production, a significant #risk for #beekeepers. A #parametricinsurance policy is discussed, using #weatherdata to trigger payouts for losses due to adverse conditions. The approach is evaluated using random forests, comparing beekeepers' losses to #insurance benefits under various weather #scenarios, alongside traditional methods. An #italian case example demonstrates pricing for different regions.
#crisis #riskmanagement"The existing data show that #political #crises make #economiccrises crises more likely, so that, as suggested by the concept of #polycrisis, feedback between non-economic crises and economic crises can be important, but there is no comparable evidence for #climate events."
This paper that explores the design of #climate#stresstests to assess #macroprudential#risks from #climatechange in the #financialsector. The authors review current climate stress #scenarios employed by #regulators, highlighting the need to consider dynamic policy choices, better understand feedback loops between climate change and the economy, and explore compound #riskscenarios. They argue that more research is needed to identify channels through which plausible scenarios can impact credit risks, incorporate #bank-lending responses to #climaterisk, assess the adequacy of climate #riskpricing in #financialmarkets, and better understand the process of expectations formation around the realizations of climate risks.